The document discusses the food processing industry in India and Armenia. It provides details about major players in Armenia's food industry like Grand Candy, the largest domestic producer known for high quality products. The document also gives an overview of Parle Products in India, a leading biscuit manufacturer, including its financial performance from 2016-2018.

1. Presented By :
Tosif Diwan 148290592001
Imran Shaikh 148290592002
Kuldeep Thakor 148290592010
Umesh Parmar 148290592014
Vinay Sharma 148290592018
MBA SEM IV
Shivam Institute of Management

3. • The food processing industry in India is a
sunrise sector that has gained prominence in
recent years.
• I dia’s agricultural production base is
reasonably strong, wastage of agricultural
produce is sizeable.
• Processing of fruits and vegetables is a low
2%, around 35% in milk, 21% in meat and 6%
in poultry products.

4. • Fruit & Vegetable processing.
• Grain Processing.
• Processing of agricultural products, dairy
products, poultry and eggs, meat and meat
products.
• Industries related to oilseeds, meals, breakfast
foods, biscuits, confectionery, malt extract,
protein isolate, high protein food, weaning food
and extruded food products
• Aerated water and soft drinks.
• Specialised packaging for food processing
industries.

6. • A small company in 1929 to sell sweets and toffees.
• Original company split up into Parle Products, Parle Agro & Parle Bisleri
• Market Leader in Glucose Biscuits (Parle G)
• 40% share in biscuit market , 15% in confectionaries
• Parle has largest manufacturing units in India
• Ranked 7th in the as one of the most trusted brands.

7. • 32 products including biscuits toffee,
candies .
• 10000 workers are employed in Parle.
• 10 mother units and 65 manufacturing
units
• Brand Ambassadors(Mr. Hritik Roshan &
Mr. Amitabh Bachhan)
• It has world’s largest achi es at their
manufacturing plant.

8. Biscuits

10. • Amongst the top best brands
• Winning awards at Monde selection Since 1971
• 111 gold, 26 silver and 4 bronzes
• Parle G as the proudest product
• Gaining popularity in international market
• World’s largest selling is uit

11. HRITIK ROSHANAMITABH BACCHAN

12. RAW MATERIAL MIXING MOULDING
BAKINGCOOLINGPACKING

13. PRODUCT PRICE
PLACE PROMOTION
TARGET
MARKET

14. • Associated with the positive values.
• Multitude of products
• Consistency of Products
• Earned as a renowned brand
• Enjoyable by all age groups

15. • Market Penetration strategy with low price.
• Value for money positioning
• Appeals to all income groups
• Profit margin for distributors is 4% and for retailers is 10-12%

16. • Extensive distribution network
• Reach to remote rural areas
• Value for money positioning
• 1500 wholesalers and 4.25 lakh retailers
• Setting up of factories at strategic locations
• Parle Products availability

17. PROMOTION STRATEGY
• Advertised mainly through Press media
• Sales Promotion
• The Dadaji TV Commercial in 1989
• Using celebrities in AD to generate fantasy
• Public relations

18. SWOT ANALYSIS
S W O T
STRENGTHS WEAKNESS OPPORTUNITIES THREATS

19. STRENGHTS
• Low Price
• Sizable market share
• Variety of products
• Deep & Effective Coverage
• Largest distribution system
• Better Understanding of consumer psyche

20. WEAKNESS
• Depends on Parle G
• Lacking schemes
• Replacement of Damaged stock
• Improper & irregular supply
• Packing of Biscuits

21. OPPORTUNITIES
• Demand for innovative packing
• Improving supply for brands
• Information through television
• Retaining loyal retailers

22. THREATS
• Hike in cost of production
• Co petitio fro MNC’s
• Emerging substitutes like toast, wafers.
• Entry of various new entrants, ITC etc

23. 35%
31%
15%
9%
10%
Market Share
Parle
Britania
Priya Gold
Sun Feast
Others

25. • Food industry is an emerging sector for the Armenian
economy, accounting for the country’s GDP for 18%.
• Usually, Armenia was exporter of various types of products
to former USSR, including fruits, vegetables, canned
vegetables and foods.
Major players in food industry of Armenia :-
1) Artashat cannery (market share 29%)
2) Euroterm (market share 27%)
3) Ararat Food Factory( market share 14%)
4) Nicola international (market share 11%)
5) Sis Natural (market share 11%)

26. Food industry in Armenia
36%
14%4%
24%
7%
3%
2%
2% 1%
8%
Breakdown of processing industry
Food
Beverage
Tobacco
Basic metals
Other non metalic mineral
products
Rubber and plastic products
Fabricated metal products
Paper products and printing
Chemicals

28. • "Grand Candy" company is the largest domestic production
facility in Armenia.
• The company, formerly known as Yerevan Confectionery
Factory was founded early in 2000.
• For the next 17 years the two factories operated separately
until they merged in 1951.
• "Grand Candy" company guided by the motto: Our quality is
our pride".
• In 2001 "Grand Candy" began ice-cream production.

29. • "Grand Candy" produces more than 400 different
products in Armenia.
• Gra d Ca dy is the largest co pa y i the Ar e ia
food industry.
• "Grand Candy" products is the high quality and the use of
natural ingredients, such as cocoa and milk products,
nuts and fillings made from fresh fruits.
• "Grand Candy" set a new Guinness World Record with
the "Largest chocolate bar".

31. PRODUCT PRICE
PLACE PROMOTION
TARGET
MARKET

32. • Grand candy produce more
than 400 products.
• Grand candy offers such
product the wide variety.
• To maintain the high quality
of its production.
• "Grand Candy" never uses
cheap and low quality
ingredients.

33. • Value that customer pays to buy
the product with the expectation
they have about what the
production is worth to them.
• Every customer segment has
different price expectation from
the product.
• Identifying right price level for each
segment, and then progressively
moving through them.

34. • The extensile distribution at work
build over the years is a major
strength for grand candy products.
• Grand candy products are available
to consumer in the most places and
in the every cities with the
population
• Company operates more than 26
brand stores at Armenia, 18 of
which including 7 stores cafes are
located in Yerevan.

35. • Grand Candy website too is very
innovative and shows nothing but
asks the visitor to take a good
product.
• The major push expected of a
FMCG company is in sales
promotions at the ground level.
• Nestle is a brand which has strong
products as well as strong
marketing, and hence the brand has
a very high brand recall value.

36. S W O T
STRENGTHS WEAKNESS OPPORTUNITIES THREATS

37. • Very high quality of the raw material
tasty, sweet, with appropriate index
of sugar sourness.
• Environment friendly production.
• Though most often not certified, but
near-organic production.
• Centuries old traditional production
for Armenia.
• Does not require enormous capital
investments.

38. • High cost of the raw material.
• The investment in to the production are returned only
in 6 months period.
• Lack of laboratories and quality control mechanisms.
• Lack of export- oriented proper packaging.
• Non organized production where the necessary fresh
products.

39. • More and more orchards of fruits
sorts appropriate for drying are
founded.
• Government support to the sector
including via supporting the exports
of the food and interference to the
food from other country
• Increasing loyalty of local customer
toward the Armenian Production
• Creation of a single regulating and
exporting body.

40. • High probability of drought and
unfavourable climatic factor,
limited infrastructure to fight
against them.
• The dependence of raw material
prices on the climate condition.
• Fluctuation of the foreign currency
exchange rates.
• Increasing price of commodities
will result in further increase in the
price of the end product.

41. Armenia India
High quality of raw material Infrastructure development
Limit use of chemical Growing number fast food chain
Lack of marketing strategy Divergent food habit
Vast domestic market Heavily bureaucratic
High demand Armenian food increasing income level
Preferences of local customer Large corporation and material base `
Lack of adequate quality control Inefficient supply chain
High probability drought , climate
factor
Religious number of different food
High competition Affordability and cultural

42. Company's Policy
"Baked with love" is the Company's commitment to achieve our customers'
satisfaction.
Our Vision
Concentrate on the consumers taste and preferences, the parle brand has
grown from strength ever since its inception.
Our Mission
Hindustan ki takat
For over 70 years. Parle G has been part of the lives of every Indian. From the
snow capped mountains in the north to the sultry town in the south, from
frenetic cities to laid back villages, Parle G has nourished, strengthened and
delight millions.

43. •Determine Type
•Seek Financing
•Obtain Information
•Evaluate Possibilities
•Examine Franchise Agreement

44. CEO/ CFO
RECOVERY DIRECTOR
RECOVERY DEPARTMENTAL
COORDINATOR
TEST COORDINATOR
PUBLIC RELATION
OFFICER
BUSINESS RESUMPTION
MANAGER
BESINESS CONSULTANT
EMERGENCY
CONTINGENCY PLANNING
COORDINATOROR
CONTINGENCY
PLANNING DIRECTOR
RECOVERY TECHNICAL
SUPPORT MANAGER
BUSINESS RESUMPTION
ANALYSIS
DATA CENTRE RECOVERY
COORDINATOR

45. •PURCHASE DEPARTMENT
•BILL BOOKING SYSTEM
•BANK PAYMENT
•CASH PAYMENTS & CASH RECEIPTS
•MAINTAIN RECORDS
•RECONCILIATION OF BANK STATEMENT

46. DESIGNATION Salary (Rs. In ) 2016
Director 250000
GENERAL MANAGER (45000*2) 90000
DEPUTY MANAGER (35000*2) 70000
ASSISTANT MANAGER (20000*6) 120000
DEPUTY MANAGER (19000*4) 76000
RETAIL PLANNER(18000*4) 72000
EXECUTIVE(12000*5) 60000
EMPLOYEES(10000*50) 500000
WORKER(6000*25) 150000
OFFICER(9000*4) 36000
ASSISTANT OFFICER(7000*4) 28000

47. 2016 2017 2018
Income
Sales Turnover 5,615.49 6,307.39 7,344.79
Less: Excise Duty 0.00 0.00 168.80
Net Sales 5,615.49 6,307.39 7,175.99
Add: Other Income 55.47 14.82 229.59
Add :Stock Adjustments 10.16 12.58 25.48
Total Income 5,681.12 6,334.79 7,431.06
Expenditure
Raw Materials 3,539.83 3,835.34 4,356.44
Add: Power & Fuel Cost 52.27 65.12 67.42
Add: Employee Cost 143.50 172.45 176.79
Add: Miscellaneous Expenses 1,518.52 1,650.44 1,829.32

48. Continue..
Operating Profit 371.53 596.62 771.50
PBDIT 427.00 611.44 1,001.09
Less :Interest 37.74 5.44 1.21
PBDT 389.26 606.00 999.88
Less: Depreciation 57.08 63.38 117.27
Profit Before Tax 332.18 542.62 882.61
PBT (Post Extraord Items) 332.18 542.62 882.61
Less: Tax 98.31 172.79 260.20
Net Profit 233.87 369.83 622.41

49. 2016 2017 2018
Sources Of Funds
Total Share Capital 23.91 23.99 23.99
Equity Share Capital 23.91 23.99 23.99
Add :Share Application Money 2.29 0.00 0.00
Add :Reserves 612.50 829.47 1,211.63
Net worth 638.70 853.46 1,235.62
Secured Loans 5.23 4.62 4.30
Add: Unsecured Loans 189.24 0.00 0.00
Total Debt 194.47 4.62 4.30
Total Liabilities 833.17 858.08 1,239.92

50. Continue…….
Application Of Funds
Gross Blockd 777.53 929.10 986.66
Less: Accum. Depreciation 325.85 383.44 460.71
Net Block 451.68 545.66 525.95
Capital Work in Progress 128.44 97.22 48.22
Investments 279.60 372.99 661.04
Inventories 331.49 366.86 345.74
Sundry Debtors 77.12 53.69 70.98
Cash and Bank Balance 64.48 65.78 186.67
Total Current Assets 473.09 486.33 603.39
Loans and Advances 350.22 342.24 623.39
Total CA, Loans & Advances 823.31 828.57 1,226.78
Current Liabilities 576.90 660.98 811.16
Provisions 272.96 325.38 410.91
Total CL & Provisions 849.86 986.36 1,222.07

51. •Investment in food processing industry in Armenia is risky
because of low GDP contribution, and competition.
•India has great scope in food processing industry because
of domestic demand is high.
•High cost of Armenian food.
•Lack of government assistance.
•Lack of modern technologies.
•Low production volumes.
•Lack of laboratories and quality control.

52. Parle Products Pvt. Ltd. is now lagging in services to retailers
because of improper supply and distribution in some areas
and competitors taking advantage of these points.
Grand Candy" company is the largest domestic production
facility in Armenia.
"Grand Candy" never uses cheap and low quality ingredients
or artificial additives of any kind.
The advantage of "Grand Candy" products is the high quality
and the use of natural ingredients.
Parle has a scope to start its business in Armenia.

53. • www.business.mapsofindia.com
• www.datanetindia-ebooks.com
• www.foodprocessingindia.co.in
• www.uttar-pradesh-state.infoisinfo.co.in
• www.googleweblight.com
• www.ibef.org
• www.makeinindia.com
• www.indianembassy.am
• www.ameria.am
• www.uptourism.gov.in
• www.tripadvisor.in
• www.tourismarmenia.org
• www.agriculture.up.nic.in
• www.investinarmenia.am
• www.reportlinker.com